Young females are making their mark when it comes to homebuying
Over time, evolving homebuying trends in South Africa have been observed like shifts in age, gender profiles, locations and even property types.
Source: Supplied. Head of sales for ooba Home Loans, Careen Mckinon.
This is particularly evident in the 26 to 30-year-old age category where ooba Home Loans' latest homebuying statistics reveal that young females aged 26–30 now account for 14% of applications received from female homebuyers during the period of January to July 2024.
“This is up by 2% on their male counterparts,” says head of Sales for ooba Home Loans, Careen Mckinon.
Mckinon adds that in a tough economic climate, the uptick is not to be sneezed at. “In a higher for longer interest-rate environment females aged 26–30 continue to make their mark despite rising costs and economic pressures.”
“In recent years, we have noted a growing number of women choosing to prioritise their financial independence by investing in property in a trend commonly referred to as ‘houses before spouses’,” she says. “While this trend has been predominantly publicised in the US, it is reflective of female homebuying patterns on local shores too.”
This sentiment is underpinned in Lightstone’s 2024 data where women-only homeowners account for 38% (2,154,000) of the market, while women co-owning properties currently accounts for 33% (1,883,000). Conversely, men-only homeowners account for 29% (1,594,000) of all properties.
In addition, ooba Home Loan’s year-to-date data reaffirms the sentiment with 75% of females aged 18–25 applying for a home loan on their own. “This figure has climbed steadily from 69% in 2019 – a commendable 6% increase over four years.”
Mckinon adds that the marked increase in young, single female homebuyers may also indicate improved financial wellness, the prioritisation of savings among the next generation of homeowners and their strong desire to invest in property as a wealth-creation strategy.
“Our data shows that 59% of first-time female homebuyers purchased a freehold title home with 65% of repeat female homebuyers indicating a preference for a freehold home rather than a sectional-title home,” she says.
“The remote work revolution has impacted on homebuyers’ purchasing decisions and has made freehold homes a popular choice. Homebuyers are rethinking what they want from a home, with key considerations including access to outdoor space and additional space to accommodate work from home.”
"Female homebuyers aged 18–25 represent 3% of all home-loan applications received from women, while those aged 31–36 account for 24%. These percentages are identical for male homebuyers too," she notes, highlighting the increasing trend of financially independent young adults prioritising homeownership before marriage and starting a family.
Over the past five years, the average price paid by 18–25 year old female homebuyers has increased by a robust 31.7%. In contrast, for those 37 years or older, the average price is broadly unchanged – suggesting these homebuyers, many of whom are presumably parents and may have greater overheads, are exercising caution in their purchases at a time of elevated interest rates and subdued economic growth.
Mckinon adds that investment into property by females aged 18–25 has also risen sharply from 2.5% in 2019 to 6.7% in 2024 (year-to-date). “Demand for investment properties is strongest among women aged 37 plus, increasing from 6.2% in 2019 to 10.6% thus far this year; this is close to the national average investment demand of 12.1%.”
“Property investment remains a popular choice – particularly for the younger homebuyer who chooses to use property as a wealth-creation strategy. Here, the buyer rents out the property so that the expenses are covered while they either rent themselves, live in another property that they own or live with family.”
Looking ahead, Mckinon believes that interest-rate cuts will aid more homebuying. “We anticipate that as interest rates decrease, the younger portion of the market (aged 18–30)– particularly first-time homebuyers - will register strong growth figures.
“Our data is showing constant evolution in homebuying behaviors and demographics, and we are excited to see what transpires in both the short and long-term” she concludes.
